Frontline’s $225m convertible bond hurdle will be cleared and the landmark may be followed by a much-hyped merger with sibling Frontline 2012.

Eirik Haavaldsen of Pareto Securities upgraded the company to hold on Frontline’s big day which sees the bond mature.

In a report to clients this morning, the analyst said: “Bondholders are to be paid back in full - who expected that two years ago?

“With this, (nearly) all the remaining Frontline-debt is Ship Finance lease debt, where we argue that some could be converted to equity in order to lower the cash break-evens and increase net asset value.